SanDisk Overview. Mike Chenery Senior Fellow. 5th Annual Needham HDD & Memory Conference Boston, MA. November 3, 2011

Transcription

1 SanDisk Overview Mike Chenery Senior Fellow 5th Annual Needham HDD & Memory Conference Boston, MA November 3, 2011

2 Forward-looking Statement During our meeting today we will be making forward-looking statements. Any statement that refers to expectations, projections or other characterizations of future events or circumstances is a forward-looking statement, including those relating to revenue, pricing, market share, market growth, product sales, industry trends, expenses, gross margin, operating income, profitability, future memory technology, production capacity and technology transitions and future products. Actual results may differ materially from those expressed in these forward-looking statements including due to the factors detailed under the caption Risk Factors and elsewhere in the documents we file from time-to-time with the SEC, including our annual and quarterly reports. We undertake no obligation to update these forward-looking statements, which speak only as of the date hereof.

3 23 Years of Disruptive Innovations 3 5th Annual NeedhamANALYST HDD & Memory Boston, MA. November 3, 2011 FINANCIAL DAYConference, : FEBRUARY 24, 2011

4 Have Helped Spawn Large Product Categories 2015 Unit TAM Digital Cameras USB Flash Drives A/V players, Gaming & Navigators Mobile Phones Tablets 177M 312M 228M 2,317M 319M Solid State Drives Internet Enabled TV, Set Top Box 146M 264M Source: Gartner, September Forecast: Semiconductor Consumption by Electronic Equipment Type, Worldwide, 3Q11 Update 4 5th Annual NeedhamANALYST HDD & Memory Boston, MA. November 3, 2011 FINANCIAL DAYConference, : FEBRUARY 24, 2011

5 SanDisk Drives Evolution of Leading Flash Formats issd SAS Wide-Port Standardization Market Expansion Market Expansion Volume mdoc inand SDC UFD Memory Stick PRO minisd microsd SD MMC CF PC Card inand ideal for emmc-based mobile devices issd ideal for SATA-based thin form factor devices 5

6 Secular Trends Drive Growth of NAND Flash Industry Content Creation and consumption Various formats Expanding HD content Video: largest driver of growth Connectivity Cloud services Social networking Sharing, replication Instant access Mobility Thin is in Instant on Low power Multimedia devices Greater demand for NAND flash solutions 6

7 Immense Opportunity for NAND Flash in the Digital Universe 1,800,000 PB = the data created and replicated in x growth in the last 5 years ~ 17,000 PB = the output of the entire NAND flash industry in 2011 Source: IDC IDC VIEW, Sponsored by EMC, Extracting Value from Chaos, June

8 End Markets for NAND Flash Are Large Billions of Gigabytes Consumer Electronics and other Mobile Tablets Computing excl. tablets 5-Yr CAGR ( ): 67% Source: Gartner, September Forecast: Semiconductor Consumption by Electronic Equipment Type, Worldwide, 3Q11 Update 8

9 SanDisk DNA: Deep Memory, Systems Expertise NAND Flash Memory Systems Solutions Four joint-venture agreements, four wafer fabs with Toshiba 10 NAND Flash generations in 11 years >20 years of MLC experience in memory, system level MLC NAND in high-volume production for more than 12 years Multiple generations of SLC, MLC, X3 NAND controllers 4 th generation of SanDisk StrongECC BCH and non-algebraic algorithms Adaptive signal processing approaches to managing NAND Flash 9

10 Solid-State Drives: New SanDisk Growth Driver PC SSDs Entry-Level + Mainstream PC TAM Units, mil ENTERPRISE SSDs TAM Units, mil Avg Capacity in GB/Unit Cloud accelerating SSD adoption Source: Gartner, September 2011 Forecast: Semiconductor Consumption by Electronic Equipment Type, Worldwide, 3Q11 Update 10

11 SanDisk Enters Enterprise Storage Solutions Market Completed acquisition of Pliant Technology, a leading developer of enterprise flash storage solutions, in May 2011 Forms SanDisk s Enterprise Storage Solutions business Strong line up of NAND-based Serial Attached SCSI (SAS) Enterprise SSDs Single firmware binary Only one qualification required for MLC/ SLC NAND and all capacity points 11

12 SanDisk ESS Competitive Advantages Advanced Firmware Memory Architecture Proprietary ASIC Controller Enterprise Class Performance, Data Reliability World Class Captive NAND Supply 12

13 New Approach: Improved Efficiencies HDD-ONLY CONFIGURATION Higher RPM (10K/15K) Short stroke HDDs Smaller form factor drives Over-provision HDDs Lower capacity HDDs Stripped data for MB/s HYBRID CONFIGURATION Storage tiers Hot data on SSDs Dual port for performance Fewer devices for reliability High capacity HDDs DO MORE FOR LESS! 13

14 Simple Proposition: Do More For Less! $1.10 /TPM HP DL580 G5* Aug 19 th 2008 HP DL380 G7** May 4 th 2011 With SanDisk Enterprise SSDs $0.65 /TPM Metric Improvement Storage Capacity (Terabytes) +74% Number of Users +65% Performance (Transactions Per Minute, TPM) +61% Drive Power (Watts) -79% Footprint (Enclosures) -77% System Cost -5% * HP ProLiant DL 580 G5, 2.67 GHz, 16MB L2, TPC Report, Hewlett Packard Company ** HP ProLiant DL 380 G7, 3.46 GHz, 12MB Cache, TPC Report, Hewlett Packard Company 14

15 Enterprise SSD Interface Forecast 100% 90% 80% PCIe 70% 60% 50% 40% 30% 20% SATA SAS PCIe SATA SAS FC 10% FC 0% Source: IDC, Worldwide Solid State Drive Forecast and Analysis, June

16 Gaining Business Momentum PRODUCTS Dual port, full duplex, 3Gb & 6Gb SAS functionality Shipping all capacities from 150 GB to 800 GB per unit Recognized for predictable performance & high reliability CUSTOMERS Shipping to 3 out of 7 Tier-1 storage OEMs Multiple systems for each OEM Positive engagements with other customers Revenue ramping up quickly Channel partners expanding reach and solutions 16 5th Annual NeedhamANALYST HDD & Memory Boston, MA. November 3, 2011 FINANCIAL DAYConference, : FEBRUARY 24, 2011

17 Thank You 17

18 SanDisk, the SanDisk logo, CompactFlash, SanDisk Extreme Pro and Sansa are trademarks of SanDisk Corporation, registered in the U.S. and other countries. inand, SanDisk issd slotradio logo and slotvideo logo are trademarks of SanDisk Corporation. Lightning is a U.S. registered trademark, and the Loop Logo is a trademark of SanDisk Corporation and its subsidiaries. microsd, minisd and SD marks and logos are trademarks of SD-3C, LLC. Memory Stick PRO is a trademark of Sony Corporation. Other brand names mentioned herein are for identification purposes only and may be the trademarks of their respective holder(s) SanDisk Corporation. All rights reserved. 18